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Part 1

On

April

3, a customer returned

$600

of merchandise that had been purchased with cash to

Ryan

Supplies.

Ryan's

cost of the goods returned was

$200.

Which journal entry or entries should

Ryan

prepare? (No sales discount was offered for early payment.)

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Part 1

A.

One entry to debit Sales Revenue for

$600

and credit Cash for

$600.

B.

One entry to debit Sales Revenue for

$400,

debit Refund Expense for

$200,

and credit Cash for

$600.

C.

One entry to debit Sales Refunds Payable and credit Cash for

$600;

another entry to debit Inventory and credit Inventory Returns Estimated for

$200.

D.

One entry to debit Cash and credit Sales Refunds Payable for

$600;

another entry to debit Inventory Returns Estimated and credit Inventory for

$200.